I've give up. There seems to be no fix. Tried "Repair" installation no help. Might uninstall and reinstall v4.8. Or maybe v4.9. Else just do without email. Just seems suspicious to me that v4.9 upgrade was mainly an email enhancement and just happened to break what used to work. But I und. I'm the only one with the problem, so maybe it's just my configuration. Not worth the time/effort any further.